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Regulatory Licenses, Registrations, and Approvals

South Korea introduces comprehensive AI regulation law, startups worry about hindering development

2026-01-22 06:48:59

PANews January 22 News, on Thursday, South Korea introduced a comprehensive artificial intelligence regulation law, called the "world's first such law," aimed at strengthening trust and safety in the industry. However, startups are concerned that compliance may hinder their development. South Korea hopes the new "Artificial Intelligence Basic Act" will make it a leader in the field, while the EU's "Artificial Intelligence Act" will be phased in by 2027. On the issue of AI regulation, there are still disagreements worldwide, with the US leaning towards a more moderate approach to avoid stifling innovation. The legislation was developed after extensive consultations, and companies will have at least a one-year grace period before authorities impose administrative fines for violations. Penalties can be severe. For example, companies that fail to label generative AI may face fines of up to 30 million won (approximately $20,400). JeongJoo-yeon, senior researcher at the Korea Startup Alliance, said the legal language is very vague, and companies might default to the safest methods to avoid regulatory risks.

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